Propell launches business loan product to support SME growth

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Propell CEO Michael Davidson said the new SME loan product will provide new revenue which he hopes will “contribute significantly”.

Australian financial services company Propell Holdings (ASX: PHL) has launched a new internal commercial loan product to give small and medium-sized business owners better access to capital for operations and growth.

The loan product will offer customers a fixed amount up to a maximum of $250,000 over a fixed term of 12 months to finance the purchase of business assets and equipment.

This will allow for increased flexibility with the company’s line of credit or fixed term loans at market competitive rates.

Initially, the commercial loan will launch as an unsecured product, with Propell adding a secured facility over time.

Financial well-being

Launched in 2020, Propell’s digital services platform aims to improve cash flow and financial well-being for small businesses by bringing together a range of financial products and services, including loans, payments and cash flow forecasting tools .

The company relies on its extensive customer database with an AI-powered engine to deliver its products in digital format.

Propell’s business has grown more than 30% quarterly since listing on the ASX in April 2021.

It has seen rapid customer growth and achieved a record 211% increase in loans to $2.53 million for the three months to the end of March.

Important demand

Propell CEO Michael Davidson said the company was encouraged by strong demand from existing customers.

“This new loan product has been developed over the past few months in response to overwhelmingly positive customer feedback on our existing product line,” he said.

“We were able to develop and launch it quickly by leveraging our existing system [which has had] extensive platform developments in the first half of this year to enable new product launches with very low technical and operational overhead.

Quick and easy access

The launch builds on Propell’s goal of giving SMEs quick and easy access to the financing products needed to operate and grow.

“Given its higher average loan size and target segment demand, this represents a new line of revenue [for us] which should contribute materially to our business,” Mr. Davidson said.

“We are optimistic about the adoption and the flexibility this will provide our customers.”

Propell is currently working to secure a larger wholesale facility to support its continued growth while reducing wholesale funding costs and improving its margins.

Capital raising

Earlier this month, Propell opened a rights offering to existing investors to raise up to $2.22 million via a private placement of shares at $0.058 each.

The capital will be used to support an increase in the company’s loan facility, drive organic growth and cover administrative costs.

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